MKTG 321 Chapter 8
Examining quality, design, materials, and possibly item reduction or deletion to acquire the product in the most cost-effective way is best described as __________________.
value analysis
North American Industry Classification System (NAICS)
An industry classification system that generates comparable statistics among the United States, Canada, and Mexico
sole sourcing
An organization's decision to use only one supplier
multiple sourcing
An organization's decision to use several suppliers
new-task purchase
An organization's initial purchase of an item to be used to perform a new job or solve a new problem
institutional markets
Organizations with charitable, educational, community, or other nonbusiness goals
vendor analysis
A formal, systematic evaluation of current and potential vendors
modified rebuy purchase
A new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified
straight rebuy purchase
A routine purchase of the same products under approximately the same terms of sale by a business buyer
reciprocity
An arrangement unique to business marketing in which two organizations agree to buy from each other
value analysis
An evaluation of each component of a potential purchase
derived demand
Demand for business products that stems from demand for consumer products
joint demand
Demand involving the use of two or more items in combination to produce a product
inelastic demand
Demand that is not significantly altered by a price increase or decrease
Competitive factors economic factors political forces legal and regulatory forces technological changes socio cultural issues
Environmental influences
B2B e-commerce site
Online marketplaces where business buyers and sellers from around the world can exchange information, goods, services, ideas, and payments
Producer markets
Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations
Reseller markets
Intermediaries that buy finished goods and resell them for a profit
Types of Business Purchases
New Task Purchase, Straight Rebuy, Modified Rebuy
the buying center
The group of people within an organization who make business buying decisions
buying center
The people within an organization who make business purchase decisions
Parts of the buying center
User, influencer, buyer, decider, gatekeeper
reverse auction
When a business buyer invites vendors to bid to supply a specified good or service in competition with each other, with the lowest bidder winning the right to sell to the buyer
product specifications
Written statements describing a product's necessary characteristics, standards of quality, and other information essential to identifying the best supplier for the needed product
Commodities and raw materials are typically purchased using which method of business buying?
description
Methods of Business Buying
description, inspection, sampling, negotiation
Influences of the Business Buying Decision Process
environmental, organizational, interpersonal, individual
government markets
have complex buying procedures due in part to their public accountability
reseller markets
includes wholesalers or retailers
age education level personality tenure position in organization
individual influences
cooperation conflict power relationships
interpersonal influences
objectives purchasing policies resources buying center structure
organizational influences
Primary Concerns of Business Customers
price, product quality, service, supplier relationships, sustainability
Online marketing efforts make the buying process far more efficient because it ________ and _______.
saves time and reduces costs
